Salmon Evolution ASA — Earnings Release 2020

Nov 19, 2020

Salmon Evolution - Q3 2020 results

Salmon Evolution - Q3 2020 results

Highlights

· Construction of Phase 1 at Indre Harøy progressing according to plan.

Contractual target price formalized at NOK 1.3 billion

· Secured financing through pre-IPO private placement of NOK 500 million,

direct equity investment of NOK 50 million and debt financing of NOK 40 million

for land acquisition at Indre Harøy

· Available cash of NOK 709 million (NOK 3,23 per share) as of 30. September

· Signed term sheet with Dongwon Industries in South Korea - one of the

world's leading seafood companies - for a potential joint venture for

international expansion and sales & marketing collaboration

· Appointed Trond Håkon Schaug-Pettersen as CFO

· Listed on Merkur Market in September 2020 under the ticker SALME-ME

Since the groundwork started in May, Phase 1 at Indre Harøy has developed

according to plan, time and budget. The main contractor, Artec Aqua, has entered

into agreements with several subcontractors who are currently working on site.

During the quarter most of the groundwork for the fish-tanks and buildings has

been completed. The drainpipe for wastewater has also been completed and works

with the corresponding tunneling is on track. Concrete works, including

foundations for buildings and tanks, started in September. From project

initiation in 2019, capital expenditures have accumulated to approx. NOK 150

million, of which NOK 66 million came in the third quarter. Total capex for

Phase 1 isolated is estimated to NOK 1.2 billion before finalization in late

Being a pre-revenue company, funding is crucial to secure project development.

During the quarter, Salmon Evolution raised NOK 50 million in new equity through

a direct investment from partner Dongwon Industries and NOK 500 million through

a private placement in connection with the listing on Merkur Market.

Commenting on the development, CEO Håkon André Berg, said:

"The third quarter has been an eventful one for Salmon Evolution, with the

raising of new capital and listing on Merkur Market, in addition to the

continued development of our unique land-based salmon farming project. We are

now well underway with the first construction phase, where we expect to harvest

the first salmon late Q4 2022."

Berg added:

"With global demand for salmon continuously growing, we are convinced land-based

farming is crucial to solve the industry's growth challenge. With new

technologies for sustainable and stable production, we believe our project has

great potential to produce what the market demands - a fresh, healthy and

premium product. Using our Hybrid Flow-Through concept we will farm our salmon

in a closed system that has minimum impact on the environment and that provides

the best conditions for optimal fish welfare - "it's truly a sustainable

approach to producing on of the world's best and healthiest proteins", says

Berg.

Outlook

Salmon Evolution expects global demand of salmon to continue to grow in coming

years, and thus see limited risk for the volume contribution from land-based

suppliers bringing the salmon market out of balance. Salmon Evolution has clear

ambitions to be among the leading players in this market. With current project

and future expansion plans combined, the company har a clear road map towards a

harvest of 70,000 tonnes HOG by 2030. The first international initiative is

expected to be in South Korea, where the company plans to partner with Dongwon

Industries.

Results presentation

CEO Håkon André Berg will present the results by webcast today, Thursday

November 19. at 08:00 a.m. CET.

The presentation and subsequent Q&A will be held in English.

The presentation can be accessed at www.salmonevolution.no, or with the

following link: https://streams.eventcdn.net/salmonevolution/2020q3/

For further information, please contact:

Håkon André Berg, CEO, Salmon Evolution

+47 41 19 22 57

About Salmon Evolution

Salmon Evolution is a Norwegian land-based salmon farming company with a vision

to be a beacon for sustainable development.

The company's first production facility is under construction at Indre Harøy,

strategically located on the Norwegian west coast with access to unlimited fresh

seawater, renewable energy, established infrastructure for salmon farming, and

an educated and experienced work force. The entire project is designed for an

annual capacity of approx. 31,500 tonnes HOG.

The project is based on a hybrid flow-through system ("HFS"), securing

controlled and optimal growth conditions, and limiting operational and

biological risk.

Salmon Evolution Holding AS is listed at the Merkur Market under the ticker

SALME-ME.

To learn more, please visit www.salmonevolution.no.

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.